EXPANDING INTO CYBER

SECURITYF-SECURE CORPORATION

INTERIM REPORT Q2 / 2015

July23, 2015CEO Christian Fredrikson

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CONTENTS• Highlights• Financials• Acquisition of nSense• Business updates• Market review

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Q2 HIGHLIGHTS

Aiming to become the cyber security leader in Europe

Overall security revenue +3 % y-o-y totaling EUR 35.5 million

Operator security sales -2 % y-o-y totaling EUR 18.6 million

Corporate reseller and direct-to-consumer revenues +10 % y-o-y totaling EUR 16.9 million

M&A: F-Secure acquired nSense, the leading Nordic cyber security services provider in June

As of the beginning of 2015 the personal cloud storage business (younited), which was sold to Synchronoss Technologies in February, is reported as discontinued operations. Consequently, comparison figures related to the statement of income have been restated. Comparison figures in the text refer to continuing operations only and the corresponding period of the previous year, unless otherwise stated.

As of 2 June 2015 the acquired cyber security services business (nSense) has been consolidated into the F-Secure Group accounts.

KEY FIGURES

4

Eur million Revenues

62% 61% 60% 60%

54%52%

38% 39% 40% 40%

46%48%

0%

10%

20%

30%

40%

50%

60%

70%

Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015

Operators Direct-to-consumer & Corporate

Revenues by channel% of revenue

34,434,5 34,5

35,9 35,5

5,2

7,46,2

5,04,1

0

5

10

15

20

25

30

35

40

Q214 Q314 Q414 Q115 Q215

Revenues EBIT (non-IFRS)

KEY FIGURES

5

Eur million Eur millionCostsDeferred revenues

Increase as a result of growth in license and renewal sales

39,938,3

4344,9 44,8

0

5

10

15

20

25

30

35

40

45

50

Q214 Q314 Q414 Q115 Q215

Deferred revenue

18,0 16,918,8

20,8 22,0

8,17,1

6,3

7,4 6,21,8

1,61,9

2,5 2,8

0,6

0

5

10

15

20

25

30

Q214 Q314 Q414 Q115 Q215

Sales & Marketing Reseach & Development

Administration Restructuring

nSense exceptional items

The increase is mainly related to personnel related expenses, costs incurred by the acquired nSense business and investments in sales and

marketing activities.

KEY FIGURES

6

Eur million Net cash

47,7 51,661,3

110,2

76,3

0

20

40

60

80

100

120

Q214 Q314 Q414 Q115 Q215

Cash position

• Personal cloud storage business (younited) sold to Synchronoss Technologies for USD 60 million in February

• Dividend of EUR 24.9 million paid in April

• Acquisition of nSense in June: EUR 11 million in cash, EUR 4 million in shares (deferred) and max 3 million earn-out

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Mobility and vast variety of connected devices is changing the Internet landscape rapidly.

Most of the data and services will be in the cloud

- or rather, many clouds.

EVERYTHING GOES INTO THE

CLOUD

INCREASING AMOUNT OF CONNECTED

DEVICES Emerging Internet of

Things opens new security, privacy and

confidentiality concerns for consumers and

businesses.

ADVENT OF THE INTERNET OF

THINGS

Modern, advanced threats will continue to impact businesses and governments and require

new ways of defense and expertise in cyber security

THREATS GETTING MORE

COMPLEX

THE BIG TRENDS

NSENSE - A FOUNDATION FOR BECOMING A EUROPEAN CYBER SECURITY LEADER

Entry into the enterprise customer segment Services and products to financial institutions, game and gambling companies,

service providers and other large businesses with critical IT infrastructure

Broadened corporate portfolio

Deal structure EUR 11 million cash consideration at closing

EUR 4 million deferred payment in F-Secure shares

Up to EUR 3 million earn-out element subject to achievement of certain milestones in 2015-16

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• Revenue EUR 7 million (2014)

• Profitable

• 69 employees

• Offices in Denmark, Finland, Poland and Norway

• Consultancy services and products

FACTS

Incident response Forensics

End-point detection E-mail & web traffic scanning

Cyber risk advisory Security advisory Security policies

OUR CYBER OFFERING IN MORE DETAIL

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Predict Prevent

DetectRetro-spective

Vulnerability assessment, testing and management

Compliance and security management

Training and security culture

KARHU

© F-Secure Confidential10

VULNERABILITY SCANNING &SECURITY MANAGEMENT

Certified as a PCI ASV scanning tool

• Centralized reporting platform• Vulnerability management

capabilities (ticketing system)• API interface• 3-1 scanning solution• Cloud or private hosting

Focus countries continued to show good progress

• Sales growth was driven by Protection Service for Business, while sales of traditional licenses slightly declined

OTHER CORPORATE HIGHLIGHTS

New features added to Business Suite

• Blocking content (Java, flash or other web components) with Advanced Protection. • Preventing employee exposure to malicious websites with Web Content Control• Controlling access to potentially unsecure sites with Connection Control while performing

business critical tasks

F-SECURE BUDDY• Launched in May• The market’s most

advanced Bluetooth tracking device

• Red Dot Award in 2014

SAFE• Over half of operators making

90% of our operator revenue have launched SAFE

• New features: Windows 10 ready, new Network checker

FREEDOME• New significant retail partnerships

in Canada and in the Nordics • First device manufacturer

partnership signed• All together 3 operators deals now

BOOSTER• Launched in April• Solid performance and

showing clear potential

CONSUMER HIGHLIGHTS

© F-Secure Confidential13

AVAILABLEOn all significant platforms(OSX launched in May)

AVAILABLE from retailers and webshops

NEW! Elkjöp (Nordics) & Staples (Canada)

FREEDOME –NEW PROTECTION LOG FEATURE

To be launched in September

MARKET REVIEW

© F-Secure Confidential14

Consumer security

• Short-term growth challenged by declining PC-related sales

• Churn between operators creates sales opportunities

• App stores continue to change the market

• Market for privacy solutions still developing

• Broadband and mobile subscriptions flat in the Western world, but growth in developing countries

Corporate security

• Cloud-based delivery disrupting the way of selling security

• Especially the cyber security market is offering growing opportunities. Growth in related consultancy services limited mainly by lack of resources

• Rush to cyber has created some hype among investors

• Geopolitics

OUTLOOK The business outlook has not changed Change in phrasing: Guidance for operating profit has been revised due to the

IFRS accounting of the deferred payment and earn-out elements of the nSenseacquisition as expense

The current outlook is: Overall security revenue growth for continuing operations is anticipated to be at or above

5 % in 2015 (2014: EUR 137.4 million). Operating profit (non-IFRS) for continuing operations is estimated to be around 15% of

revenues. The guidance excludes the profit from the sale of the personal cloud storage business and the cost impact of the acquisition of nSense.

Approximately EUR 6 million in revenues from services sold to Synchronoss is anticipated to be recognized in discontinued operations.

© F-Secure Confidential15

Previous guidance for operating profit was “Operating profit for continuing operations is estimated to be around 15% of revenues (excluding the profit from the sale of the personal cloud storage business)”.

© F-Secure Confidential16

THANK YOU!

Questions?

FINANCIALSQ2 2015

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As of the beginning of 2015 the personal cloud storage business (younited), which was sold to Synchronoss Technologies in February, is reported as discontinued operations. Consequently, comparison figures related to the statement of income have been restated. Comparison figures in the text refer to continuing operations only and the corresponding period of the previous year, unless otherwise stated.

As of 2 June 2015 the acquired cyber security services business (nSense) has been consolidated into the F-Secure Group accounts.

REVENUES Q2 Revenues increased by 3% y-o-y

Total quarterly revenues 35.5m (Q214: 34.4 m)

Operator revenues declined by 2% to 18.6m (Q214: 19.1 m)

Corporate and direct to consumer channels grew by 10% to 16.9m (Q214:15.3 m)

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EURm

34,434,5 34,5

35,9 35,5

5,2

7,46,2

5,04,1

0

5

10

15

20

25

30

35

40

Q214 Q314 Q414 Q115 Q215

Revenues EBIT (non-IFRS)

5,2

7,4

6,2

5,0

4,1

0%

5%

10%

15%

20%

25%

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

Q214 Q314 Q414 Q115 Q215

EBIT (non-IFRS) EBIT (non-IFRS) %

PROFITABILITYQ2 Operating Profit

EBIT (non-IFRS) 4.1m, 12% of revenues

EBIT (IFRS) 4.0m, 11% (Q214: 5.2m, 15%)

Earnings per share for continuing operations EUR 0.02(EUR 0.02)

Earnings per share EUR 0.02(EUR 0.02)

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EURm

COSTSQ2 costs

Costs 31.0m (Q214: 27.9m), +11% y-o-y

The increase is mainly related to personnel related expenses, costs incurred by the acquired nSensebusiness and investments in sales and marketing activities

Depreciations from past capitalized expenses were 1.4m (Q214: 2.0m)

Capitalized R&D expenses were 0.5m (Q214: 0.6m)

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EURm

18,0 16,918,8

20,8 22,0

8,17,1

6,3

7,4 6,21,8

1,61,9

2,5 2,8

0,6

0,0 0,00,111

0

5

10

15

20

25

30

35

Q214 Q314 Q414 Q115 Q215

Sales & Marketing Reseach & Development

Administration Restructuring

nSense exceptional items

DEFERRED REVENUESQ2 Deferred revenues increased to 44.8m (39.9m)

Continued growth in Corporate and Direct Business

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EURm

39,938,3

4344,9 44,8

0

5

10

15

20

25

30

35

40

45

50

Q214 Q314 Q414 Q115 Q215

SOLID CASH POSITION Solid operational cash flow in Q2

Cash flow from operations 4.2m* (Q214: 6.0m)

Change in cash -33.9m*

Dividend payment of 24.9m

Cash consideration of 11m for nSense acquisition

Market value of liquid assets on 30 June 76.3m (Q214 : 47.7m)

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EURm

* Including discontinued business

47,751,6

61,3

110,2

76,3

0

20

40

60

80

100

120

Q214 Q314 Q414 Q115 Q215

Cash position

NUMBER OF PERSONNEL Number of personnel

901 (Q214: 951) at the end of the quarter

69 nSense employees became F-Secure employees as of 2 June 2015

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474 477 469 434 493

344 327 325274

273

133 129 127

133135

0

100

200

300

400

500

600

700

800

900

1000

Q214 Q314 Q414 Q115 Q215

Sales and Marketing

Research and Development

REGIONAL REVENUE

25

32%

45%

9%

14%

35%

46%

7%

12%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Nordic Rest of Europe North America Rest

01-06/2015 01-06/2014

% of revenue